iShares Bitcoin Premium Income ETF 10-Q

Item 1. Financial Statements iShares ® Bitcoin Premium Income ETF Statement of Assets and Liabilities (Unaudited) At June 30, 2026 June 30, 2026 Assets Investment in bitcoin, at fair value (a) $ 28,595,505 Investments, at fair value — affiliated (b) 14,251,772 Receivable for capital shares sold 14,437,257 Receivable for options premium 53,648 Receivable for dividends — affiliated 20 Total Assets 57,338,202 Liabilities Sponsor’s fee payable 5,357 Payable for investments purchased 14,520,219 Options written, at value (c) 165,163 Total Liabilities 14,690,739 Commitments and contingent liabilities (Note 6) — Net Assets $ 42,647,463 Shares issued and outstanding (d) 880,000 Net asset value per Share (Note 2E) $ 48.46 (a) Cost of investment in bitcoin is $29,377,708. (b) Cost of investments — affiliated is $14,669,416. (c) Premiums received $430,939. (d) No par value, unlimited amount authorized. See notes to financial statements. 1 Table of Contents iShares ® Bitcoin Premium Income ETF Statement of Operations (Unaudited) For the Period from April 21, 2026 (Date of Seeding) to June 30, 2026 For the Period from April 21, 2026 (Date of Seeding) to June 30, 2026 Investment Income Dividends – affiliated $ 20 Total investment income 20 Expenses Sponsor’s fee 6,135 Sponsor’s fee waived ( 778 ) Total expenses 5,357 Net investment loss ( 5,337 ) Net Realized and Unrealized Gain (Loss) Net realized gain from: Options written 79,073 Net realized gain 79,073 (b) Net change in unrealized appreciation/depreciation on: Investments – affiliated ( 417,644 ) Investments in bitcoin ( 782,203 ) Options written 265,776 Net change in unrealized appreciation/depreciation ( 934,071 ) Net realized and unrealized loss ( 854,998 ) Net decrease in net assets resulting from operations $ ( 860,335 ) Net decrease in net assets per Share (a) $ ( 6.47 ) (a) Net decrease in net assets per Share based on average shares outstanding during the period. (b) Includes $79,073 of realized gains and $0 of realized losses. See notes to financial statements. 2 Table of Contents iShares ® Bitcoin Premium Income ETF Statement of Changes in Net Assets (Unaudited) For the Period from April 21, 2026 (Date of Seeding) to June 30, 2026 For the Period from April 21, 2026 (Date of Seeding) to June 30, 2026 Net Assets at April 21, 2026 $ — Operations: Net investment loss ( 5,337 ) Net realized gain 79,073 Net change in unrealized appreciation/depreciation ( 934,071 ) Net decrease in net assets resulting from operations ( 860,335 ) Capital Share Transactions: Contributions for Shares issued 43,507,798 Distributions for Shares redeemed — Net increase in net assets from capital share transactions 43,507,798 Increase in net assets 42,647,463 Net Assets at June 30, 2026 $ 42,647,463 Shares issued and redeemed Shares issued 880,000 Shares redeemed — Net increase in Shares issued and outstanding 880,000 See notes to financial statements. 3 Table of Contents iShares ® Bitcoin Premium Income ETF Statement of Cash Flows (Unaudited) For the Period from April 21, 2026 (Date of Seeding) to June 30, 2026 For the Period from April 21, 2026 (Date of Seeding) to June 30, 2026 Cash Flows from Operating Activities Net decrease in net assets resulting from operations $ ( 860,335 ) Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: Purchases of bitcoin ( 19,707,876 ) Purchases of investments ( 9,850,814 ) Proceeds from sales of investments 31,785 Net change in unrealized appreciation/depreciation 1,199,847 Change in options written, at value 165,163 Change in operating assets and liabilities: Receivable for dividends – affiliated ( 20 ) Sponsor’s fee payable 5,357 Receivable for options premium ( 53,648 ) Net cash used in operating activities $ ( 29,070,541 ) Cash Provided by Financing Activities Proceeds from issuance of Shares $ 29,070,541 Net cash provided by financing activities $ 29,070,541 Cash Net increase in cash $ — Cash, beginning of period — Cash, end of period $ — See notes to financial statements. 4 Table of Contents iShares ® Bitcoin Premium Income ETF Schedule of Investments (Unaudited) At June 30, 2026 Security Quantity Fair Value Investments iShares ® Bitcoin Trust ETF (a)(b) (Cost: $ 14,649,322 ) 425,080 $ 14,231,678 Bitcoin (Cost: $ 29,377,708 ) 484 28,595,505 BlackRock Cash Funds: Treasury, SL Agency Shares, 3.62 % (a)(c) (Cost: $ 20,094 ) 20,094 20,094 Total Investments Before Options Written — 100.47 % (Cost: $ 44,047,124 ) 42,847,277 Options Written — (0.39) % (Premiums Received: $ (430,939) ) ( 165,163 ) Total Investments Net of Options Written — 100.08 % (Cost: $ 43,616,185 ) 42,682,114 Liabilities in Excess of Other Assets — (0.08) % ( 34,651 ) Net Assets — 100.00 % $ 42,647,463 (a) Affiliate of the Trust. (b) All or a portion of the security has been pledged and/or segregated as collateral in connection with outstanding exchange-traded options written. (c) Annualized 7 -day yield as of period end. Affiliates Affiliated Issuer Value at 04/21/26 Purchases at Cost Proceeds from Sales Net Realized Gain (Loss) Change in Unrealized Appreciation (Depreciation) Value at 06/30/26 Shares Held at 06/30/26 Income Capital Gain Distributions from Underlying Trusts BlackRock Cash Funds: Treasury, SL Agency Shares $ — $ 20,094 (a) $ — $ — $ — $ 20,094 20,094 $ 20 $ — iShares ® Bitcoin Trust ETF — 14,649,322 — — ( 417,644 ) 14,231,678 425,080 — — $ — $ ( 417,644 ) $ 14,251,772 $ 20 $ — (a) Represents net amount purchased (sold). Derivative Financial Instruments Outstanding as of Period End Exchange-Traded Options Written Description Number of Contracts Expiration Date Exercise Price Notional Amount (000) Value Call iShares ® Bitcoin Trust ETF 959 07/02/26 USD 35.00 USD 3,211 $ ( 3,136 ) iShares ® Bitcoin Trust ETF 959 07/10/26 USD 35.00 USD 3,211 ( 26,844 ) iShares ® Bitcoin Trust ETF 959 07/17/26 USD 36.00 USD 3,211 ( 26,841 ) iShares ® Bitcoin Trust ETF 959 07/24/26 USD 34.00 USD 3,211 ( 108,342 ) $ ( 165,163 ) See notes to financial statements. 5 Table of Contents iShares ® Bitcoin Premium Income ETF Notes to Financial Statements (Unaudited) June 30, 2026 1 - Organization The iShares Bitcoin Premium Income ETF (the “Trust”) was organized on September 25, 2025 as a Delaware statutory trust. The trustee is BlackRock Fund Advisors (the "Trustee"), which is responsible for the day-to-day administration of the Trust. The Trust’s sponsor is iShares Delaware Trust Sponsor LLC, a Delaware limited liability company (the "Sponsor"). The Bank of New York Mellon serves as the "Trust Administrator". The Trust is governed by the provisions of the Second Amended and Restated Trust Agreement (the "Trust Agreement") executed by the Sponsor, the Trustee and Wilmington Trust, National Association, a national association ("Delaware Trustee"), as of June 4, 2026. The Trust issues units of beneficial interest (“Shares”) representing fractional undivided beneficial interests in its net assets. On April 21, 2026, BlackRock Financial Management, Inc. (the “Seed Capital Investor”) purchased 2,000 Shares for $ 100,000 at a per-Share price of $ 50.00 (the “Seed Creation Baskets”). The Seed Capital Investor did not receive from the Trust, the Sponsor or any of their affiliates any fee or other compensation in connection with the purchase of Seed Creation Baskets. On June 9, 2026, the Trust purchased approximately 110 bitcoin with the proceeds of the Seed Creation Baskets using Coinbase Inc. (the “Prime Execution Agent”). The costs incurred in connection with the purchase of bitcoin with the proceeds of the Seed Creation Baskets were borne by the Trust. The Sponsor’s fee started accruing daily at an annualized rate equal to 0.65 % of the net asset value of the Trust on June 10, 2026. The Trust’s registration statement on Form S- 1 relating to its continuous public offering of Shares was declared effective by the Securities and Exchange Commission (“SEC”) on June 12, 2026 ( Effective Date) and the Shares were listed on The Nasdaq Stock Market LLC (“NASDAQ”) on June 16, 2026. The Trust seeks to reflect generally the performance of the price of bitcoin while providing premium income by writing (selling) call options primarily on iShares ® Bitcoin Trust ETF ("IBIT") shares and, from time to time, on Exchange-Traded Products Indices ("ETP Indices"). This strategy may be impacted by changes in the value of IBIT shares, ETP Indices, limitations in the Trust’s ability to write or close options, risks related to trading options, and the risk that the Clearing Agent could default on its obligations. Premiums received may not be sufficient to offset losses from volatility in bitcoin, IBIT shares, or ETP Indices over time. The Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities. The accompanying unaudited financial statements were prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and with the instructions for Form 10 -Q and the rules and regulations of the SEC. In the opinion of management, all material adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of the interim period financial statements, have been made. Interim period results are not necessarily indicative of results for a full-year period. The Trust qualifies as an investment company solely for accounting purposes and not for any other purpose and follows the accounting and reporting guidance under the Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services - Investment Companies, but is not registered, and is not required to be registered, as an investment company under the Investment Company Act of 1940, as amended. 2 - Significant Accounting Policies A. Basis of Accounting The following significant accounting policies are consistently followed by the Trust in the preparation of its financial statements in conformity with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. B. Bitcoin Coinbase Custody Trust Company, LLC (the “Bitcoin Custodian”) is responsible for safekeeping the bitcoin owned by the Trust. Anchorage Digital Bank N.A. is the “Additional Bitcoin Custodian” for the Trust. At the current time, the Sponsor has no plans to move any of the Trust’s bitcoin to the Additional Bitcoin Custodian. The Bitcoin Custodian and the Additional Bitcoin Custodian are appointed by the Trustee. The net asset value of the Trust on any given day is computed by subtracting the Trust’s accrued expenses and liabilities, which include the Trust’s options positions from the value of the Trust’s total assets, which consist of: ( 1 ) the Trust’s bitcoin, IBIT shares, and cash; ( 2 ) any earnings on those assets; and ( 3 ) any other assets of the Trust, in each case as of the close of trading on that day, each determined by the Trustee pursuant to policies established from time to time by the Trustee or its affiliates or otherwise described herein. The Trust’s periodic financial statements are prepared in accordance with the Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurement” and utilize an exchange-traded price from the Trust’s principal market for bitcoin as of 11:59 p.m. Eastern Time (“ET”) on the Trust’s financial statement measurement date. The Sponsor determines in its sole discretion the valuation sources and policies used to prepare the Trust’s financial statements in accordance with U.S. GAAP. The Trust engages a third -party vendor to obtain a price from a principal market for bitcoin, which is determined and designated by such third -party vendor daily based on its consideration of several exchange characteristics, including oversight, and the volume and frequency of trades. The Sponsor has the exclusive authority to determine the Trust’s net asset value, which it has delegated to the Trustee under the Trust Agreement. The Trustee has delegated to the Trust Administrator the responsibility to calculate the net asset value of the Trust and the net asset value per Share (“NAV”), based on a pricing source selected by the Trustee. In determining the Trust’s net asset value, the Trust Administrator values the bitcoin held by the Trust based on an index (the “Index”), unless the Sponsor in its sole discretion determines that the Index is unreliable. The methodology used 6 Table of Contents to calculate the Index price to value bitcoin in determining the net asset value of the Trust may not be deemed consistent with U.S. GAAP. The CME CF Bitcoin Reference Rate – New York Variant for the Bitcoin – U.S. Dollar trading pair (the “CF Benchmarks Index”) shall constitute the Index, unless the CF Benchmarks Index is not available or the Sponsor in its sole discretion determines the CF Benchmarks Index is unreliable as the Index and therefore determines not to use the CF Benchmarks Index as the Index. If the CF Benchmarks Index is not available or the Sponsor determines, in its sole discretion, that the CF Benchmarks Index is unreliable (together a “Fair Value Event”), the Trust’s holdings may be fair valued on a temporary basis in accordance with the fair value policies approved by the Trustee. Additionally, the Trust Administrator monitors for unusual prices and escalates to the Trustee if detected. If the CF Benchmarks Index is not used, the Trust will notify Shareholders in a prospectus supplement, in its periodic Exchange Act reports and/or on the Trust’s website. The Trust Administrator calculates the net asset value of the Trust and the NAV once on each day other than a Saturday or a Sunday or a day on which NASDAQ is closed for regular trading (a “Business Day”). The NAV for a normal trading day will be released after 4:00 p.m. ET. Trading during the core trading session on NASDAQ typically closes at 4:00 p.m. ET. However, NAVs are not officially released until after the completion of a comprehensive review of the NAV and prices utilized to determine the NAV of the Trust by the Trust Administrator. Upon the completion of the end of day reviews by the Trust Administrator the NAV is released to the public typically by 5:30 p.m. ET and generally no later than 8:00 p.m. ET. The period between 4:00 p.m. ET and the NAV release after 5:30 p.m. ET (or later) provides an opportunity for the Trust Administrator and the Trustee to detect, flag, investigate, and correct unusual pricing should it occur and implement a Fair Value Event, if necessary. Any such correction could adversely affect the value of the Shares. The Trust’s periodic financial statements may not utilize the net asset value of the Trust to the extent the methodology used to calculate the Index is deemed not to be consistent with U.S. GAAP. Gain or loss on sales of bitcoin is calculated on a trade date basis using the average cost method. The following table summarizes activity in bitcoin for the period from April 21, 2026 ( Date of Seeding) to June 30, 2026: Period from April 21, 2026 (Date of Seeding) to June 30, 2026 Quantity Cost Fair Value Realized Gain (Loss) Beginning balance — $ — $ — $ — Bitcoin purchased 484 29,377,708 29,377,708 — Net change in unrealized appreciation/depreciation — — ( 782,203 ) — Ending balance 484 $ 29,377,708 $ 28,595,505 $ — C. Options Written The Trust will purchase IBIT shares in the market using cash received from Authorized Participants and will write (sells) covered call options primarily on IBIT shares to generate premium income. All options written by the Trust will be U.S. exchange-listed. Options written on IBIT may be standardized options or Flexible Exchange (“FLEX”) options to provide flexibility in the exercise prices and expirations and to manage exposure. The Trust will write standardized IBIT options and, based on a number of factors, FLEX IBIT options. Such factors may include, among other things, market conditions, options liquidity, and options’ strike price. The Trust may also write standardized index options. The Trust’s options will generally have monthly expirations but may vary in term, to achieve the Trust’s investment objective. An option is a contract that gives the purchaser (the “option holder”), in exchange for a premium the right but not the obligation to buy (a “call option”) or sell (a “put option”) an underlying asset, or settle for cash in an amount based on an underlying asset, rate, or index at a specified price (the “exercise price”) during a period of time or on a specified date. When the Trust writes (sells) a call option, it receives a premium and gives the purchaser of the option the right to purchase from the Trust the IBIT shares at an exercise price by or on the expiration date. The options the Trust writes may be European style, meaning they are exercisable at the exercise price only on the expiration date, or American style, meaning they can be exercised at any time on or prior to their expiration date. The Trust typically trades options that expire monthly but may vary in term, to achieve the Trust’s investment objective. In addition to purchasing IBIT shares to post as collateral for options, the Trust will also hold IBIT shares to meet its liquidity needs. As a result, the Trust fully participates in market gains or declines of bitcoin through its IBIT shares not held as collateral. Additionally, the Trust fully participates in market gains or declines of bitcoin through its bitcoin holdings. If the Trust buys a call option, it pays a premium and receives the right, but not the obligation, to purchase IBIT shares or another reference asset at an exercise price by or on the expiration date. However, the Trust expects to purchase options only to close out existing positions on options contracts where it is the seller in order to roll, or extend, the expiration date of its position in the options contracts where it acts as seller. When the Trust rolls an option, the purchased option contract closes out the old option contract that was sold and the Trust has no further obligations under such old option contract. The Trust’s only option exposure is under the new option that it sold in respect of the new, extended expiration date. Please refer to Note 9 for additional disclosures regarding the Trust’s investments in options written. 7 Table of Contents D. Securities Transactions and Income Recognition Securities transactions are accounted for on the trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions from the underlying trusts, if any, are recorded on the ex-dividend date. E. Calculation of Net Asset Value On each Business Day, as soon as practicable after 4:00 p.m. ET, the net asset value of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the total assets held by the Trust. The Trust Administrator computes the NAV by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made. F. Cash and Cash Equivalents Cash includes non-interest bearing, non-restricted cash maintained with one banking institution. Cash in a bank deposit account, at times, may exceed U.S. federally insured limits. G. Offering of the Shares Shares are issued and redeemed continuously in aggregations of 20,000 Shares (a “Basket”) or integral multiples thereof, based on the quantity of bitcoin attributable to each Share (net of accrued but unpaid Sponsor’s fee and any accrued but unpaid expenses or liabilities). Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. Only registered broker-dealers that are eligible to settle securities transactions through the book entry facilities of the Depository Trust Company and that have entered into a contractual arrangement with the Sponsor governing, among other matters, the creation and redemption of Shares (such broker-dealers, the “Authorized Participants”), can place orders to receive Baskets in exchange for cash, bitcoin and/or IBIT shares. Baskets may be redeemed by the Trust in exchange for an amount of bitcoin and/or IBIT shares corresponding to their redemption value or for the cash proceeds from selling the amount of bitcoin and/or IBIT shares corresponding to their redemption value. In connection with cash creations and redemptions, the Trust engages in bitcoin transactions for converting cash into bitcoin (in association with purchase orders) and bitcoin into cash (in association with redemption orders) by choosing, in its sole discretion, to trade directly with third parties (each, a “Bitcoin Trading Counterparty”), who are not registered broker-dealers pursuant to written agreements between such Bitcoin Trading Counterparties and the Trust, or choosing to trade through Coinbase, Inc. (the “Prime Execution Agent”) acting in an agency capacity with third parties through its Coinbase Prime service pursuant to the Prime Execution Agent Agreement. H. Distributions Premiums and other income received by the Trust on its assets may be used to acquire additional assets or, in the discretion of the Sponsor, distributed to shareholders. The Trust is under no obligation to make periodic distributions to shareholders. Distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Trust. I. Income Taxes The Trust is treated as a partnership for federal, state and local income tax purposes. No provision for federal, state, and local income taxes has been made in the accompanying financial statements because the Trust is not subject to income taxes. Shareholders are individually responsible for their own tax payments on their proportionate share of income, gain, loss, deduction, expense and credit. The Sponsor has analyzed the tax positions as of June 30, 2026, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability. J. Segment Reporting The Chief Financial Officer of the Sponsor acts as the Trust’s Chief Operating Decision Maker (“CODM”) and is responsible for assessing performance and allocating resources with respect to the Trust. The CODM has concluded that the Trust operates as a single operating segment since the Trust has a single investment strategy as disclosed in its prospectus, against which the CODM assesses performance. The financial information provided to and reviewed by the CODM is presented within the Trust’s financial statements. 3 - Trust Expenses The Sponsor’s fee is accrued daily at an annualized rate equal to 0.65 % of the net asset value of the Trust and is payable at least quarterly in arrears in U.S. dollars or in-kind or any combination thereof. For the period ended June 30, 2026, the Sponsor’s fee was $ 6,135 . The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time. The Sponsor is under no obligation to waive any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver. The Sponsor may voluntarily waive an amount of the daily Sponsor fee equal to the estimated fees associated with investments in IBIT shares. In the future, if the Sponsor decides to waive all or a portion of the Sponsor’s fee, Shareholders will be notified in a prospectus supplement, in its periodic Exchange Act reports and/or on the Trust’s website. For the period ended June 30, 2026, the amount waived was $ 778 . 8 Table of Contents The Sponsor has agreed to assume the marketing and the following administrative expenses of the Trust: the fees of the Trustee, the Delaware Trustee, the Trust Administrator, the Bitcoin Custodian, the Additional Bitcoin Custodian, and The Bank of New York Mellon (the “Cash Custodian”), NASDAQ listing fees, SEC registration fees, printing and mailing costs, tax reporting fees, audit fees, license fees and expenses and up to $ 500,000 per annum in ordinary legal fees and expenses. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Trust in excess of the $ 500,000 per annum required under the Trust Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Trust. 4 - Related Parties The Sponsor and the Trustee are considered to be related parties to the Trust. The Trustee’s fee is paid by the Sponsor and is not a separate expense of the Trust. On April 21, 2026, the Seed Capital Investor purchased 2,000 Shares of the Trust. On June 1, 2026, the Seed Capital Investor purchased an additional 198,000 Shares. As of June 30, 2026, affiliates of BlackRock, Inc., including the Seed Capital Investor, beneficially owned 200,000 Shares of the Trust, representing approximately 22.7 % of the Shares outstanding. 5 - Indemnification The Trust Agreement provides that the Sponsor shall indemnify the Trustee, its directors, employees, delegees and agents against, and hold each of them harmless from, any loss, liability, claim, cost, expense or judgment of any kind whatsoever (including the reasonable fees and expenses of counsel) that is incurred by any of them and that arises out of or is related to ( 1 ) any offer or sale by the Trust of Baskets, ( 2 ) acts performed or omitted pursuant to the provisions of the Trust Agreement (A) by the Trustee, its directors, employees, delegees and agents or (B) by the Sponsor or ( 3 ) any filings with or submissions to the SEC in connection with or with respect to the Shares, except that the Sponsor shall not have any obligations to pay any indemnification amounts incurred as a result of and attributable to ( x ) the willful misconduct, gross negligence or bad faith of, or material breach of the terms of the Trust Agreement by, the Trustee, (y) information furnished in writing by the Trustee to the Sponsor expressly for use in the registration statement, or any amendment thereto, filed with the SEC relating to the Shares that is not materially altered by the Sponsor or (z) any misrepresentations or omissions made by an authorized participant (other than the Sponsor) in connection with such authorized participant’s offer and sale of Shares. The Trust Agreement provides that the Trustee shall indemnify the Sponsor, its directors, employees, delegees and agents against, and hold each of them harmless from, any loss, liability, claim, cost, expense or judgment of any kind whatsoever (including the reasonable fees and expenses of counsel) ( 1 ) caused by the willful misconduct, gross negligence or bad faith of the Trustee or ( 2 ) arising out of any information furnished in writing to the Sponsor by the Trustee expressly for use in the registration statement, or any amendment thereto or periodic report, filed with the SEC relating to the Shares that is not materially altered by the Sponsor. The Trust Agreement provides that the Sponsor and its shareholders, directors, officers, employees, affiliates (as such term is defined under the Securities Act of 1933, as amended) and subsidiaries and agents shall be indemnified from the Trust and held harmless against any loss, liability, claim, cost, expense or judgment of any kind whatsoever (including the reasonable fees and expenses of counsel) arising out of or in connection with the performance of their obligations under the Trust Agreement or any actions taken in accordance with the provisions of the Trust Agreement and incurred without their ( 1 ) willful misconduct, gross negligence or bad faith or ( 2 ) reckless disregard of their obligations and duties under the Trust Agreement. Pursuant to the applicable agreements with the Trust’s third -party service providers, the Trust has agreed to indemnify such service providers against certain claims, losses, liabilities and expenses, subject to the terms, conditions and limitations set forth therein. The Trust’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Trust, which cannot be predicted with any certainty. 6 - Commitments and Contingent Liabilities In the normal course of business, the Trust may enter into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust, that have not yet occurred. 7 - Concentration Risk Substantially all of the Trust’s assets are holdings of bitcoin, which creates a concentration risk associated with fluctuations in the price of bitcoin. Accordingly, a decline in the price of bitcoin will have an adverse effect on the value of the Shares of the Trust. Factors that may have the effect of causing a decline in the price of bitcoin include negative perception of digital assets; a lack of stability and standardized regulation in the digital asset markets; the closure or temporary shutdown of digital asset platforms due to fraud, business failure, security breaches or government mandated regulation; and a loss of investor confidence. 9 Table of Contents 8 - Financial Highlights The following financial highlights relate to investment performance and operations for a Share outstanding for the period from April 21, 2026 ( Date of Seeding) to June 30, 2026. Period from April 21, 2026 (Date of Seeding) to June 30, 2026 Net asset value per Share, beginning of period $ 50.00 Net investment loss (a) ( 0.04 ) Net realized and unrealized loss (b) ( 1.50 ) Net decrease in net assets from operations ( 1.54 ) Net asset value per Share, end of period $ 48.46 Total return, at net asset value (c)(d)(e)(f) ( 5.61 )% Ratio to average net assets: Net investment loss (g)(h) ( 0.57 )% Total expenses (g)(h) 0.65 % Total expenses after fees waived (g)(h) 0.57 % (a) Based on average Shares outstanding during the period. (b) The amounts reported for a Share outstanding may not accord with the change in aggregate gains and losses on investment for the period due to the timing of Share transactions in relation to the fluctuating fair values of the Trust’s underlying investment. (c) Based on the change in net asset value of a Share during the period. (d) Percentage is not annualized. (e) For the period June 12, 2026 ( Effective Date) to June 30, 2026. (f) For the period April 21, 2026 to June 30, 2026, the Trust’s total return was ( 3.08 )%. (g) Percentage is annualized. (h) Ratios reflect the period June 12, 2026 ( Effective Date) to June 30, 2026. 9 - Investing in Written Options In writing options, the Trust bears the risk of an unfavorable change in the value of the underlying instrument or the risk that it may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Trust purchasing or selling a security when it otherwise would not, or at a price different from the current market value. The following table shows the fair value, by risk exposure category, on the Statement of Assets and Liabilities as of June 30, 2026: Liability Derivatives Fair Value June 30, 2026 Equity contracts Options written, at value $ 165,163 The average value of option written is $ 165,163 . 10 Table of Contents The following table shows the effect of the written options, by risk exposure category, on the Statement of Operations for the period from April 21, 2026 ( Date of Seeding) to June 30, 2026: Statement of Operations Location Net Realized Gain (Loss) Net Change in Unrealized Appreciation/Depreciation For the Period from April 21, 2026 (Date of Seeding) to June 30, 2026 Equity contracts Net realized gain from options written $ 79,073 $ — Net change in unrealized appreciation/depreciation on options written — 265,776 10 - Investment Valuation U.S. GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trust’s policy is to value its investment at fair value. Various inputs are used in determining the fair value of assets and liabilities. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows: Level 1 −  Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 −  Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3 −  Unobservable inputs that are unobservable for the asset or liability, including the Trust’s assumptions used in determining the fair value of investments. At June 30, 2026, the value of the bitcoin held by the Trust is categorized as Level 1. Fair value pricing could result in a difference between the prices used to calculate the Trust’s net asset value and the prices used by the Trust’s underlying index, which in turn could result in a difference between the Trust’s performance and the performance of the Trust’s underlying index. Exchange-traded options written on IBIT are valued by an independent pricing service using a mathematical model, which incorporates a number of market data factors, such as the trades and prices of the underlying instruments. IBIT is valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. The following table summarizes the value of each of the Trust’s investments by the fair value hierarchy levels as of June 30, 2026: Level 1 Level 2 Level 3 Total June 30, 2026 Bitcoin $ 28,595,505 $ — $ — $ 28,595,505 BlackRock Cash Funds: Treasury, SL Agency Shares 20,094 — — 20,094 iShares ® Bitcoin Trust ETF 14,231,678 — — 14,231,678 Options Written ( 165,163 ) — — ( 165,163 ) 11 - Subsequent Event On July 1, 2026, the Sponsor declared that the Trust’s first cash distribution in an aggregate amount of $ 457,925 (the "Distribution") to Shareholders of record on July 2, 2026. The Distribution was paid on July 8, 2026. Shares began trading ex-dividend on July 2, 2026. Other than the item noted above, there were no subsequent events requiring adjustment or additional disclosure in the financial statements. 11 Table of Contents